New Delhi: The Government will sell up to 5 per cent stake in Bharat Heavy Electricals Ltd (BHEL) via an offer for sale (OFS) beginning on Wednesday at a floor price of Rs 254 a share.

"Government offers to disinvest 3 per cent equity in the BHEL with an additional 2 oer cent as green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.

The issue will open for non-retail investors on Wednesday, while retail investors will get to put in price bid on Thursday.

If fully subscribed at the floor price, sale of 17.41 crore shares, or 5 percent stake, would fetch the government Rs 4,422 crore.

The floor price of Rs 254 a share is about 8 percent below BHEL's closing share price of Rs 276.05 on the BSE.

The base issue size comprises over 10.44 crore shares, or 3 per cent stake, in BHEL, plus a greenshoe option to sell over 6.96 crore shares or 2 per cent.

The government holds 63.17 per cent in BHEL. Shares of BHEL closed at Rs 276.05, up 0.53 per cent over its previous close on Tuesday.

So far in the current fiscal year, the government has raised Rs 8,768 crore through PSU disinvestments.

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